Co-gasification of coal and biomass is emerging as potential clean fuel technology to achieve high thermodynamic efficiency with relatively low CO2 emission. The coal and biomass have been exclusively gasified more than a century to obtain gas–liquid fuels and the production of chemicals. Co-gasification has higher efficiency than the solitary coal gasification because the cellulose, hemicellulose and lignin content of biomass help to ignite and enhance the rate of gasification. It is suggested that the extensive research on carbon reactivity pattern, heat release, reaction kinetics, etc. may support to reduce the uncertainties in the co-gasification performance of coal and biomass blends, particularly in India. The prospects of co-gasification technology in Indian context have been discussed considering the abundance of varieties of coal and biomass. The suitability of existing gasifier procedures and their limitations with operating parameters like temperature, residence time, density optimisation, feed rate, agglomeration intensity, the tar formation and techno-economics involved are described. Also, this paper reviews the research highlights of the history of co-gasification and the advancement in upcoming challenges like a design of gasifier, access and preparation of biomass, disposal of residue, environmental concerns and reassurance to the operators for execution of large and small-scale projects.